MANAPPURAM FINANCE LTD - APPROACHING RESISTANCE AREA

Feb 6

Symbol - MANAPPURAM

Manappuram Finance Ltd. has been experiencing a recovery from lower levels in recent weeks. The stock has bounced back from support zones and is now testing key resistance areas. However, it faces considerable challenges at higher levels, showing signs of consolidation as it approaches its resistance zones.

The overall trend appears to be in recovery, following a significant dip. However, the stock is facing resistance at higher levels, indicating a potential pause or consolidation before any significant movement.

Short-term trend looks slightly bearish, as the stock has encountered selling pressure at resistance levels and is currently consolidating. Long-term trend remains positive, driven by the company’s strong fundamentals in the gold loan market.

The stock is currently trading within an ascending triangle pattern and is consolidating near key resistance levels. My personal bias is towards the downside, and we could potentially see a sell-off from the resistance zone towards the triangle support trendline, with the possibility of a move below it.

The trade strategy could involve looking for short opportunities near the resistance zone, especially if the stock fails to break out and begins to reverse. However, if the stock manages to break above the resistance trendline of the ascending triangle, the bias would shift to the upside.





Disclaimer - Do not consider this as a buy/sell recommendation. I'm sharing my analysis & my trading position. You can track it for educational purposes. Thanks!

Feb 11

Trade active

207 to 197

10 rupees (-5%) fall after sharing trading idea.

Feb 12

Trade closed: target reached

CMP 187

Trading plan worked as anticipated.
-20 rupees or -10% fall from my short level. Now reaching trendline support area.

Feb 14

Note

CMP 181

Now down -26 rupees or -12.60% from my short level.

Feb 14

Note

CMP 171

207 to 171
-36 rupees or -18% fall done. All targets reached.